The Asia-Pacific Trade Agreement, also known as APTA, is a trade bloc that has been in existence for more than 40 years. It is made up of seven member states in the Asia-Pacific region, including Bangladesh, China, India, Laos, South Korea, Sri Lanka, and Mongolia. Recently, the United Kingdom has expressed interest in joining APTA as it seeks to expand its trade relationships outside of the European Union.
The Asia-Pacific region is one of the fastest-growing economies in the world, and the APTA agreement aims to foster deeper economic cooperation and integration between its member states. The agreement covers a wide range of areas, including trade in goods, services, and investments. It also includes provisions on intellectual property, technical cooperation, and dispute settlement.
For the United Kingdom, joining APTA has the potential to open up new market opportunities in the Asia-Pacific region. With Brexit, the UK is seeking to diversify its trade relationships and reduce dependence on the EU. By joining APTA, the UK would be able to tap into the growing markets of the member states, which account for a combined GDP of over $26 trillion.
However, joining APTA is not without its challenges. The agreement requires members to reduce tariffs and other trade barriers among themselves, which could impact the competitiveness of domestic industries. It also requires members to adhere to certain labor and environmental standards, which may not be in line with the UK`s current regulations.
Despite these challenges, the UK is determined to pursue membership in APTA. In June 2021, UK Trade Secretary Liz Truss announced that the country had formally applied to join the agreement. The move was welcomed by APTA members, who saw it as a positive step towards deepening economic ties with the UK.
In conclusion, the Asia-Pacific Trade Agreement presents a significant opportunity for the United Kingdom to expand its trade relationships in the Asia-Pacific region. While there are challenges to joining the agreement, the potential benefits are clear. By pursuing APTA membership, the UK can diversify its trade portfolio and improve its economic prospects in the post-Brexit era.